Pub. 12 2013-2014 Issue 2

N e w J e r s e y C o a l i t i o n O f A u t o m o t i v e R e t a i l e r s 9 new jersey auto retailer w w w . n j c a r . o r g Director’s Message  continued from page 7 work. New vehicles are expensive, generally require financing and often involve a trade- in. Consumers are better served by multiple retailers competing for their business. Most buyers, according to the Harvard Business Re- view , value a combination of online service, personal service and physical locations over standaloneWeb distribution –which sounds exactly like the dealer franchise system that’s currently in place. FTC Announces Advertising Enforcement Actions Against Dealers The FTC issued a press release September 3, 2013 stating that it has entered into proposed consent orders with a Cleveland dealership and a Baltimore area dealership for alleged advertising violations that appeared on their respective websites. In one of the cases, the FTC alleged that the dealer advertised that particular vehicle models were available at a specific dealer discount when “in fact, once consumers reach the dealership, they find out that [the dealership] has failed to disclose that the specific discounts are available for some, but not all, of the models advertised.” In the other case, the FTC alleged that the dealer advertised specific dealer discounts and prices as being generally available to consumers when “in fact, once consumers reach the dealership, they find out that there are significant restrictions on obtaining the advertised discounts or that the advertised discounts are not available in full.” The FTC alleged that these are deceptive practices which violate Section 5 of the FTC Act. In the proposed consent orders, the dealerships (which neither admit nor deny the alleged violations) agree to sev- eral provisions, such as avoiding certain advertising representations, retaining their ads and promotional material for 5 years, and filing compliance reports with the FTC. The FTC’s press release, the proposed consent orders and the ads that led to the above actions, are available at www.ftc.gov/ opa/2013/09/autoads.shtm. OSHA Withdraws Proposal to Change Consultation Program In deference to the objections of small business groups, including NADA, OSHA has withdrawn a proposal to modify rules governing its time-honored On-Site Con- sultation Program. The proposal could have weakened the “wall” between onsite consultations andOSHA enforcement, thus acting as a disincentive for dealerships to ac- cess the program. NADAhas long suggested that OSHA On-Site Consultations are one way for dealerships to review their federal or state OSHA compliance and to enhance workplace health and safety. DOT Relaxes Some Hazmat Shipping Requirements A new U.S. Department of Transporta- tion rule relaxes the hazardous material (hazmat) shipping requirements for air bags and seat belt pretensioners. Dealer- ship Parts and Service Departments and Body Shops receive and/or ship a variety of hazmat, including chemicals, batteries, solvents, oils, and wastes in addition to air bags and seat belt pretensioners. Ef- fective Aug. 29, 2013, the new federal rule eliminates the need to obtain explosive (EX) numbers for use on shipping papers accompanying air bag modules, inflators and seat belt pretensioners. It does not, however, modify the mandate that deal- erships properly package and mark these items prior to shipment. It also does not modify the need for dealership employees who receive, ship, or transport hazardous materials to be trained every three years on the DOT’s hazmat packaging, labeling, and shipping rules. NADA’s A Dealer Guide to the Federal Hazmat Transportation Regula- tions (publication L37) is currently being revised to reflect these and other recent changes.